Some pleasing financial results, including from AMP Ltd, helped the market hang on to a small gain despite pressure from a regional sell-off. Photo: Bloomberg

The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each closed Thursday's session ahead by less than 0.1 per cent at 5638.9 points and 5634 points respectively.

Local shares lifted as much as 0.8 per cent in early trade after taking a positive lead from Wall Street. But gains dissipated in the afternoon as the ASX echoed falls on China's Shanghai Composite Index and Hong Kong's Hang Seng after a closely watched survey showed Chinese factory activity at a three-month low.

The flash reading of the HSBC-Markit China manufacturing purchasing managers index dropped by more than forecast to 50.3 points in August, down from 51.7 points in July.

"The global economic recovery has slowed again. More monetary and fiscal support is needed," HSBC China economist Hongbin Qu said.

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Resources giant BHP Billiton lost 0.3 per cent to $38.03, extending the previous session's slide and following a raft of analyst downgrades to "sell" in reaction to Tuesday's $16 billion demerger announcement. Main rival Rio Tinto fell 0.6 per cent to $65.60. The spot price for iron ore, delivered in China, was 0.8 per cent lower at $US92.30 a tonne.

The big four banks were split with National Australia Bank and Westpac Banking Corporation higher while ANZ Banking Group and Commonwealth Bank of Australia fell. Telstra Corporation added 1.2 per cent at $5.73, posting a new 12-year high on the way.

In the main, investors were focused on the swag of results delivered on one of the busiest days of August company reporting season.

"In general, the theme of this reporting season is companies are delivering results in line with guidance and demonstrating optimism about the economic outlook for the year ahead by lifting dividends, or announcing special payouts or buybacks" Totus Capital portfolio manager Ben McGarry said.

Reserve Bank of Australia governor Glenn Stevens was right to raise concerns that corporate Australia's focus on returning capital to shareholders may risk the ability to fund future growth, Mr McGarrry said.

Financial markets data systems provider IRESS Ltd was the best-performing stock in the ASX 200, climbing 11.1 per cent to $9.80, as it showed a 47.9 per cent pick-up in underyling profit for the six months to June.

Household appliance maker Breville was the worst performer, dumping 18.6 per cent to $7.10, despite lifting its final dividend. Shares slumped following the surprise resignation of chief executive Jack Lord as the company revealed a 1.9 per cent drop in full-year net profit.